The Sunday Mail
As the United Auto Workers (UAW) strike against the Big Three US automakers entered the 22nd day, the economic loss that the US auto industry has hence incurred is snowballing.
A new assessment by Michigan-based Anderson Economic Group LLC shows that the strike has led to US$359 million direct wage losses to original equipment manufacturers; US$3,45 billion losses to the Big Three; US$2,67 billion losses in wages and earnings for the suppliers; and US$1,21 billion losses to dealers, customers and others.
In all, the strike has cost the auto industry US$7,7 billion dollars by the fourth week of the work stoppage.
In a rare move, Ford Motor Co. Executive Chairman Bill Ford on Monday called on the union to make a deal and end the strike that is threatening not only the future of the automaker but of the American automotive industry, local media reported.
The union unexpectedly expanded the strike to Ford’s most profitable plant in Kentucky that brings in US$25 billion in annual revenue, or one-sixth of its global automotive revenue Wednesday.
On the following day, Ford said it has reached the limit of what it can offer to the UAW.
The UAW is ready for more walkouts against the Big Three “with little notice,” said UAW President Shawn Fain Friday in a webcast.
“We are prepared at any time to call on more locals to stand up and walk out. We will be calling out plants when we need to, with little notice.”
To date, the strike has cost General Motors Co. US$507 million and Ford US$517 million, local media reported, citing JP Morgan estimates on Monday. In further estimates, the strike is costing GM US$21 million per day, and Ford US$44 million per day, up from the original assessment of US$18 million, after Ford’s Kentucky plant was put on strike.
The union announced strike at three select factories of Ford, General Motors Co. and Stellantis NV on September 14, after its contract with the Big Three expired.
It spread the strike to 38 GM and Stellantis parts distribution centers around the country on September 22, following a failure in making meaningful progress in new contract negotiations and further to GM and Ford SUV assembly plants on September 29, and then to Ford’s highly profitable truck plant in Kentucky last Wednesday in the latest move.
To date, about 34 000 out of some 146 000 Big Three US automakers represented by the UAW are on strike across the country.
With nearly 4 000 Mack Trucks workers going on strike on October 9, the total number of UAW members on strike now exceeds 38 000. – Xinhua
